Next year's result assumes an $0.08 hit from recently completed sales and purchases, and a $0.12 benefit from base operations. Higher taxes, pension expense, and the strong dollar should negatively impact by $0.06. Lower interest expense and fewer shares should benefit by $0.03.

2016 Q4 base EPS guidance of $0.60-$0.65 is inline with previous, but compares to Street estimates of $0.64. Full-year guidance remains at $2.70-$2.75.

Sonoco Products (SON-1.9%) is downgraded to Underperform from Neutral with a $42 price target at DA Davidson on valuation.

The firm said after SON's Q4 earnings that it admired the company for its consistent profitability, steady equity performance and reliable dividend, but the stock price has surged 19% as investor sentiment has shifted from bearish to optimistic over the past two months.

With $182M in cash on the balance sheet at year-end 2015, ~100M shares outstanding and projecting an additional $50M in cash on hand by year-end 2016, The firm expects SON to continue its 33-year streak of consecutive dividend increases later this month.